Question 1

In the markets for the factors of production in the circular-flow diagram,

Accepted Answer

A)  households are sellers and firms are buyers.
B)  households are buyers and firms are sellers.
C)  households and firms are both buyers.
D)  households and firms are both sellers.E) A) and D)
F) B) and C)

Question 2

Table 2-5
   Cooki=s (in dazens)   Caffe (inguund)  10000800350600650400800200100001150\begin{array} { | c | c | } \hline 	ext { Cooki=s (in dazens)  } & 	ext { Caffe (inguund)  } \\hline 1000 & 0 \\hline 800 & 350 \\hline 600 & 650 \\hline 400 & 800 \\hline 200 & 1000 \\hline 0 & 1150 \\hline\end{array} Cooki=s (in dazens)  10008006004002000​ Caffe (inguund)  035065080010001150​​ 
-Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Which of the following combinations of cookies and coffee is not currently attainable but would be attainable if there was an improvement in overall production technology?

Accepted Answer

A)  800 dozen cookies and 150 pounds of coffee
B)  700 dozen cookies and 400 pounds of coffee
C)  500 dozen cookies and 850 pounds of coffee
D)  300 dozen cookies and 900 pounds of coffee E) C) and D)
F) B) and C)

Question 3

Figure 2-4 
-Refer to Figure 2-4. It is possible for this economy to produce

Accepted Answer

A)  40 notepads and 20 lamps.
B)  50 notepads and 30 lamps.
C)  70 notepads and 40 lamps.
D)  All of the above.E) C) and D)
F) A) and B)

Question 4

The country of Aceland produces two goods, televisions and computers. Last year, it produced 200 televisions and 500 computers. This year, it produced 250 televisions and 600 computers. Given no other information, which of the following events could not explain this change?

Accepted Answer

A)  Aceland experienced a reduction in unemployment.
B)  Aceland experienced an improvement in computer-making technology.
C)  Aceland acquired more resources.
D)  Any of these events could, in fact, explain the change.E) None of the above
F) A) and D)

Question 5

When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

Accepted Answer

A) True 
 B)False

Question 6

Economists believe that production possibilities frontiers

Accepted Answer

A)  never have a bowed shape.
B)  rarely have a bowed shape.
C)  often have a bowed shape.
D)  always have a bowed shape.E) None of the above
F) B) and D)

Question 7

Which of the following statements applies to economics, as well as to other sciences such as physics?

Accepted Answer

A)  Experiments are considered valid only when they are conducted in a laboratory.
B)  Good theories do not need to be tested.
C)  Real-world observations often lead to theories.
D)  Economics, as well as other sciences, is concerned primarily with abstract concepts.E) All of the above
F) C) and D)

Question 8

Figure 2-14 
-Refer to Figure 2-14. Point B represents an inefficient outcome for this economy.

Accepted Answer

A) True 
 B)False

Question 9

In the past, environmentalists thought of economics as a method of maximizing profits. Presently,

Accepted Answer

A)  there is now realization that economics offers a framework for natural resource allocation.
B)  economists are helping to formulate the intellectual framework behind approaches to protecting endangered species, reducing pollution, and preventing climate change.
C)  economics informs environmental studies but economists still do not work for environmental advocacy groups.
D)  More than one of the above is correct.E) None of the above
F) A) and B)

Question 10

Figure 2-16
In the following graph the x-axis shows the number of times a commuter rail train stops at a station per hour and the y-axis shows the number of commuter rail passengers per hour.Commuter Rail Passengers by Frequency of Service 
-Refer to Figure 2-16. Which of the following conclusions should not be drawn from observing this graph?

Accepted Answer

A)  There is a positive correlation between the frequency of service and the number of passengers.
B)  When there are 5 stops per hour, there are approximately 200 passengers.
C)  More stops per hour is associated with more passengers per hour.
D)  No other factors besides the frequency of service affect the number of passengers.E) None of the above
F) A) and B)

Question 11

When two variables have a positive correlation,

Accepted Answer

A)  they tend to move in opposite directions.
B)  they tend to move in the same direction.
C)  one variable will move while the other remains constant.
D)  the variables' values are never negative.E) C) and D)
F) B) and D)

Question 12

Economists build economic models by

Accepted Answer

A)  generating data.
B)  conducting controlled experiments in a lab.
C)  making assumptions.
D)  reviewing statistical forecasts.E) B) and C)
F) None of the above

Question 13

Figure 2-14 
-Refer to Figure 2-14. Given the technology available for manufacturing doghouses and dishwashers, this economy does not have enough of the factors of production to support the level of output represented by point C.

Accepted Answer

A) True 
 B)False

Question 14

Economists at which of the following offices help formulate spending plans and regulatory policies?

Accepted Answer

A)  Office of Management and Budget
B)  Department of the Treasury
C)  Congressional Budget Office
D)  The Federal ReserveE) A) and B)
F) A) and C)

Question 15

Figure 2-7 
-Refer to Figure 2-7. Inefficient production is represented by which point(s) ?

Accepted Answer

A)  K, M
B)  L
C)  L, M
D)  ME) A) and B)
F) B) and D)

Question 16

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Accepted Answer

A) True 
 B)False

Question 17

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Accepted Answer

A) True 
 B)False

Question 18

Evaluating normative statements involves values as well as facts.

Accepted Answer

A) True 
 B)False

Question 19

Production is efficient if the economy is producing at a point

Accepted Answer

A)  on the production possibilities frontier.
B)  outside the production possibilities frontier.
C)  on or inside the production possibilities frontier.
D)  inside the production possibilities frontier.E) A) and C)
F) B) and D)

Question 20

Which of the following concepts cannot be illustrated by the production possibilities frontier?

Accepted Answer

A)  efficiency
B)  opportunity cost
C)  equality
D)  trade-offsE) A) and B)
F) A) and C)

Exam 2: Thinking Like an Economist

In the markets for the factors of production in the circular-flow diagram,

Correct Answer
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Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Correct Answer
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Figure 2-14 -Refer to Figure 2-14. Given the technology available for manufacturing doghouses and dishwashers, this economy does not have enough of the factors of production to support the level of output represented by point C.

Correct Answer
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Correct Answer
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The country of Aceland produces two goods, televisions and computers. Last year, it produced 200 televisions and 500 computers. This year, it produced 250 televisions and 600 computers. Given no other information, which of the following events could not explain this change?

Correct Answer
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In the past, environmentalists thought of economics as a method of maximizing profits. Presently,

Correct Answer
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When two variables have a positive correlation,

Correct Answer
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Which of the following concepts cannot be illustrated by the production possibilities frontier?

Correct Answer
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Which of the following statements applies to economics, as well as to other sciences such as physics?

Correct Answer
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When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

Correct Answer
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Economists at which of the following offices help formulate spending plans and regulatory policies?

Correct Answer
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Economists build economic models by

Correct Answer
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Economists believe that production possibilities frontiers

Correct Answer
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Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Correct Answer
verified

Correct Answer
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Figure 2-14 -Refer to Figure 2-14. Point B represents an inefficient outcome for this economy.

Correct Answer
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Production is efficient if the economy is producing at a point

Correct Answer
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Evaluating normative statements involves values as well as facts.

Correct Answer
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Figure 2-7 -Refer to Figure 2-7. Inefficient production is represented by which point(s) ?

Correct Answer
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Figure 2-4 -Refer to Figure 2-4. It is possible for this economy to produce

Correct Answer
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Exam 2: Thinking Like an Economist

In the markets for the factors of production in the circular-flow diagram,

Correct AnswerverifiedShow Answer

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14. Given the technology available for manufacturing doghouses and dishwashers, this economy does not have enough of the factors of production to support the level of output represented by point C.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The country of Aceland produces two goods, televisions and computers. Last year, it produced 200 televisions and 500 computers. This year, it produced 250 televisions and 600 computers. Given no other information, which of the following events could not explain this change?

Correct AnswerverifiedShow Answer

In the past, environmentalists thought of economics as a method of maximizing profits. Presently,

Correct AnswerverifiedShow Answer

When two variables have a positive correlation,

Correct AnswerverifiedShow Answer

Which of the following concepts cannot be illustrated by the production possibilities frontier?

Correct AnswerverifiedShow Answer

Which of the following statements applies to economics, as well as to other sciences such as physics?

Correct AnswerverifiedShow Answer

When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

Correct AnswerverifiedShow Answer

Economists at which of the following offices help formulate spending plans and regulatory policies?

Correct AnswerverifiedShow Answer

Economists build economic models by

Correct AnswerverifiedShow Answer

Economists believe that production possibilities frontiers

Correct AnswerverifiedShow Answer

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14. Point B represents an inefficient outcome for this economy.

Correct AnswerverifiedShow Answer

Production is efficient if the economy is producing at a point

Correct AnswerverifiedShow Answer

Evaluating normative statements involves values as well as facts.

Correct AnswerverifiedShow Answer

Figure 2-7 -Refer to Figure 2-7. Inefficient production is represented by which point(s) ?

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4. It is possible for this economy to produce

Correct AnswerverifiedShow Answer

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